In the middle of the fifth wave of the pandemic, there is also good news for the people of Munich. In any case, in the eyes of the coalition, the finances of your city have come through the crisis so well that the Greens and SPD will spend almost another 150 million euros extra for their political goals when the budget for 2022 is passed.
The coalition wants and will do everything to ensure that people “can still live as well and safely in 50 years’ time,” said SPD parliamentary group leader Anne Hübner. The green-red policy is “exactly the right way” there.
The CSU and FDP consider the spontaneous additional spending to be irresponsible, as does the coalition’s long-term financial planning overall. During their term of office, they “eat up” all the reserves that the city had built up since the Second World War, criticized CSU faction leader Manuel Pretzl. In addition, they accumulated so much debt that future city governments would no longer have any room for manoeuvre.
As hard as the 2022 budget was fought for, it was undisputed that the forecasts last summer were still bleak: the city would generate a deficit of more than half a billion euros, it was said at the time. In fact, the numbers have changed color in the meantime, from red to black. And so the city council decided on Wednesday for a budget with a plus of 127 million euros in ongoing administration for 2022, against the votes of all opposition parties.
As has been the case several times since the beginning of the corona pandemic, the city council met in the horse show palace in Fröttmaning, this time with a somewhat reduced number of participants due to the Omicron developments. And as befits a proper budget debate, the local politicians also put on a bit of a show in three and a half hours of speeches about money.
The planned new borrowing of more than one billion euros is “no small matter”
Mayor Dieter Reiter (SPD) initially practiced the art of forecasting: As always, the government factions would emphasize that the city had come through the budget crisis well and was setting the right priorities; the opposition will criticize this, as well as that too much or too little is being saved, too much or too little is being invested.
Last year, according to Reiter, the courage to make cuts and savings was demonstrated. “I am very pleased that today we can reverse some of these painful cuts, especially in human resources.” Munich has set itself an ambitious program for the future. The planned new borrowing of more than one billion is “no small matter”, but forms the basis for investments in the construction of schools and daycare centers, in affordable housing, in local public transport and in climate protection projects.
Treasurer Christoph Frey (SPD) explained why the city can now afford more again after the dramatic slump in finances and the initially gloomy forecasts for the coming years: Since the third quarter of 2021 there has been a real trade tax rally with additional payments and ” solid advance payments”. 3.3 billion euros flowed to the city from trade taxes in 2021 – after the pandemic-related slump in 2020, an all-time record. Nevertheless, the city must remain disciplined, although it took on less debt in 2020 and 2021 than planned, but still too much.
From 2023 onwards, the goal must again be a surplus of at least 400 million euros so that the city remains capable of acting and shaping things. Personnel officer Alexander Dietrich (CSU) emphasized that positions in the city could be filled again after the slowdown last year and that even 29 million euros would be spent on additional new positions.
The coalition is trying to find the right balance with the draft budget, said Green parliamentary group leader Florian Roth, between moderation and urgently needed investments – with a view to the previous black-red coalition, he spoke of an “investment backlog as a legacy”. However, he does not believe that the budget crisis has been “sustainably overcome”. When it comes to investments, the coalition is setting clear social and ecological priorities, for example with additional 100 million euro packages for housing and climate protection. Roth would like a change in speed: “We have to get faster.”
The FDP notes that OB Reiter is “sausage”.
CSU parliamentary group leader Manuel Pretzl rejected the investment backlog and in return complained about the numerous short-term expenditures by Green-Red. “This is not an award for the political ability of this coalition.” With a planned borrowing of six billion euros by 2025, Green-Red will no longer be able to present an approvable budget at the end of their term of office. FDP parliamentary group leader Jörg Hoffmann misses a red thread in the finances, described the coalition’s policy as anti-business and noted a “sausage” in Mayor Reiter, which is evident across many topics, including the unmotivated budget speech. He has the impression that Reiter just wants to “chill out” until the end of his term.
The mayor immediately rejected that, he only gave a damn about the speeches of a certain FDP parliamentary group leader, he etched back. In terms of content, faction leader Anne Hübner vehemently represented the positions of the SPD. The pandemic in particular has shown how indispensable the Social Democrats are for the city. “Our claim not to leave anyone alone in times of need is more relevant than ever. Not just in times of crisis, but always.”
She was also aggressive in her settlement with the largest opposition party. The CSU is only populist, she said. Hübner, who was the first woman to speak to the household after five men, began her speech after Pretzl’s contribution with the provocative wish: “Less testosterone, more parity.” Pretzl dismissed this as sexist. Hormone balances should not be part of the budget debate. A wish for the future, free of charge.